According to the firms’ business plans, they aim to launch their banks in six to nine months.

The HKMA is now working closely with a total of eight virtual bank licensees to help them prepare for launch, says Norman Chan, chief exec at the HKMA.

Chan adds that the launch of these banks and granting these licences aims to champion Smart Banking Initiatives in the city, and that the HKMA will monitor how these banks are doing after launch.

There is a total of 160 banks licensed in Hong Kong.

The city estate has been granting these types of licences to increasingly more banks. Just recently, FinTech Futures reported on a joint venture between Bank of China (BOC) Hong Kong, JD New Orbit Technology and JSH Virtual Ventures Holdings (JSHVV), which acquired the same licence for a new virtual bank.